S&P puts Barclays on watch

Standard & Poor's said it placed the AA long-term counterparty credit rating on Barclays Bank plc on CreditWatch with negative implications and affirmed the A-1+ short-term counterparty credit rating.

The AA-/A-1+ ratings on holding company Barclays plc were placed on CreditWatch with negative implications.

The watch comes after Barclays' said it would acquire some of Lehman Brothers Holdings Inc.'s (D//D) operations. Lehman filed for Chapter 11 on Sept. 15, although its U.S. subsidiaries currently remain outside the scope of the filing, S&P said.

The watch reflects the agency's view that, while the deal fits in with Barclays' strategy and is at an attractive price, it increases potential earnings volatility at a time when ratings were already pressured by a difficult operating environment, the agency noted.

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